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eISSN: 2581-9615 || CODEN: WJARAI || Impact Factor 8.2 ||  CrossRef DOI

Research and review articles are invited for publication in March 2026 (Volume 29, Issue 3) Submit manuscript

Examining the role of environmental social and governance metrics in financial reporting and investment decision-making during corporate mergers

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  • Examining the role of environmental social and governance metrics in financial reporting and investment decision-making during corporate mergers

Olajide Alex Ajide 1, Aramide Ajayi 2, Emmanuel Egyam 3, *, Justin Nnam 4 Adebayo Adegbenro 5 and Edith Kafui Agbexornu 6

1 Darden School of Business, University of Virginia, Charlottesville, Virginia, USA.

2 Jones Graduate School, Rice University, Houston, Texas, USA.

3 Stanford Graduate School of Business, Stanford University, California, USA. 

4 International Finance Corporation, World Bank Group Washington, District of Columbia, USA. 

5 Harvard Business School, Boston, Massachusetts, USA.

6 Naveen Jindal School of Management, University of Texas at Dallas, Richardson, Texas, USA.

Review Article

World Journal of Advanced Research and Reviews, 2025, 27(03), 1462-1475

Article DOI: 10.30574/wjarr.2025.27.3.3255

DOI url: https://doi.org/10.30574/wjarr.2025.27.3.3255

Received on 09 August 2025; revised on 18 September 2025; accepted on 20 September 2025

The integration of Environmental, Social, and Governance (ESG) metrics into financial reporting and investment decision-making has emerged as a critical factor in contemporary corporate merger activities. This comprehensive review examines the transformative impact of ESG considerations on merger evaluation processes, due diligence frameworks, and post-merger value creation strategies. Through systematic analysis of existing literature, regulatory developments, and empirical evidence, this study reveals that ESG metrics significantly influence merger outcomes, investor confidence, and long-term value creation. The research demonstrates that companies incorporating robust ESG frameworks during merger activities experience enhanced stakeholder trust, improved regulatory compliance, and superior long-term financial performance. Our investigation synthesizes evidence from multiple jurisdictions and industry sectors, highlighting ESG's capacity to address critical challenges in modern merger and acquisition transactions. By exploring emerging trends, implementation mechanisms, and analytical frameworks, this review provides a balanced perspective on the opportunities and limitations of ESG integration in merger contexts. The findings suggest that while ESG metrics present promising enhancements to traditional merger evaluation approaches, successful implementation requires careful consideration of measurement standardization, stakeholder expectations, and regulatory compliance requirements.

Environmental Social Governance; ESG Metrics; Corporate Mergers; Financial Reporting; Investment Decision-Making; Due Diligence; Stakeholder Value; Sustainable Finance

https://wjarr.com/sites/default/files/fulltext_pdf/WJARR-2025-3255.pdf

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Olajide Alex Ajide, Aramide Ajayi, Emmanuel Egyam, Justin Nnam, Adebayo Adegbenro and Edith Kafui Agbexornu. Examining the role of environmental social and governance metrics in financial reporting and investment decision-making during corporate mergers. World Journal of Advanced Research and Reviews, 2025, 27(3), 1462-1475. Article DOI: https://doi.org/10.30574/wjarr.2025.27.3.3255

Copyright © Author(s). All rights reserved. This article is published under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, sharing, adaptation, distribution, and reproduction in any medium or format, as long as appropriate credit is given to the original author(s) and source, a link to the license is provided, and any changes made are indicated.


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